Regulations and compliance
Procurement thresholds
Definition
The financial values that determine which procurement rules apply to a public sector contract — below-threshold contracts follow lighter rules, while above-threshold contracts must comply with full procurement regulations including mandatory advertising and specific procedure requirements.
UK public procurement operates on a tiered system. The key thresholds (as of January 2024) are: £12,000 for central government advertising on Contracts Finder; £30,000 for sub-central authorities advertising on Contracts Finder; £214,904 for goods and services (the international threshold requiring Find a Tender publication and full regulatory compliance); £663,540 for light touch regime services; and £5,372,609 for works contracts.
Below the international thresholds, buyers must still follow the principles of transparency, proportionality, and equal treatment, but they have more flexibility in how they procure. Above the thresholds, specific procedural rules apply — they must use one of the defined procedures (open, restricted, competitive dialogue, etc.), advertise on FTS, and comply with standstill periods before awarding.
Thresholds are recalculated every two years by the Cabinet Office, based on the WTO Government Procurement Agreement. They apply to the estimated total value of the contract over its full lifetime, including any extension options — not just the annual value.
Why it matters for bidders
Thresholds determine the rules of engagement. Below-threshold procurements are often simpler and faster, but less predictable in their process. Above-threshold procurements follow standardised rules that create a more level playing field — understanding which regime applies helps you calibrate your bid approach.
How Skim helps
Skim classifies every opportunity by its threshold regime, flagging which procurement rules apply and what procedural requirements to expect — so you know whether you are entering a full regulated competition or a lighter, more flexible process.
Related terms
Public Contracts Regulations 2015(PCR 2015)
The primary legislation governing public procurement in England, Wales, and Northern Ireland, transposing the EU Public Procurement Directive into UK law. Being progressively replaced by the Procurement Act 2023.
Procurement Act 2023
The new UK procurement legislation replacing the Public Contracts Regulations 2015, introducing a simplified and more flexible framework including new procedures, a single digital platform, and enhanced transparency requirements.
Contracts Finder
The UK government's free online portal where public sector buyers must advertise contract opportunities and publish award notices for contracts valued above £12,000 (central government) or £30,000 (sub-central authorities).
Find a Tender(FTS)
The UK's e-notification service that replaced the Official Journal of the European Union (OJEU) for UK procurements after Brexit, used for publishing contract notices above the international procurement thresholds.